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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15330 / April 15, 1997
SECURITIES AND EXCHANGE COMMISSION V. NVID INTERNATIONAL, INC.,
MATTHEW E. KLENOVIC, and ROBERT F. BUNTE, DEFENDANTS, and MARILEE
S. KLENOVIC and ANDREW ARATA, RELIEF DEFENDANTS. United States
District Court for the Middle District of Florida, Tampa
Division, No. 97-758-CIV-T-25E.
The Securities and Exchange Commission announced that on
April 11, 1997 it obtained an Order of Preliminary Injunction
against NVID International, Inc., Matthew E. Klenovic, and Robert
F. Bunte. The Court found good cause to believe that the
defendants violated Section 17(a) of the Securities Act of 1933
and Section 10(b) of the Securities and Exchange Act of 1934.
The Order extended the terms of the Temporary Restraining Order
issued on April 3, 1997, including the freeze on the assets of
the defendants and the relief defendants. The Order granted
defendant NVID International, Inc. the opportunity to petition
the Court to release its assets if NVID is unable to reach a
"going forward" agreement with the Commission that enables it to
conduct the lawful business of the corporation. The defendants
and relief defendants were given ten days to provide an
accounting of their assets.
The Order arises out of a complaint filed by the Commission
on April 3, 1997 in the United States District Court for the
Middle District of Florida. In its complaint, the Commission
alleges that during 1996, NVID, Klenovic, and Bunte defrauded
investors by raising $3.3 million dollars and spending most of
that money for improper purposes, including the purchase of three
Sarasota, Florida homes.
The Honorable Henry Lee Adams, Jr. issued the Order after
hearing arguments from the Commission, the defendants, and relief
defendant Marilee S. Klenovic. [For further information, see
Litigation Release No. 15317.]